Nifty started the week on a positive note, reclaiming the crucial 24700 zone after last week`s failure to hold this level - Tradebulls Securities Pvt Ltd
Nifty
Nifty started the week on a positive note, reclaiming the crucial 24700 zone after last week’s failure to hold this level. Although it closed below this support earlier, the index managed to sustain above its 20 WEMA at 24560, keeping the broader structure intact. For the August series, options data suggests that 24500 will serve as the immediate support, followed by a stronger base at 24000. On the higher side, 25000 remains the critical resistance, holding the trigger for a potential bullish reversal. Currently, the weekly trading range appears confined between 24700 and 25000. Technical indicators are showing mixed signals. While the ADX remains elevated above 40 and RSI stands at 40 with a bullish crossover—suggesting the possibility of strength—overall signals still point to caution. Additionally, oversold conditions reflected by the OI PCR readings hint at the likelihood of a short-term rebound. Volatility remains low as India VIX trades below 12, but traders should stay alert; any rise in VIX along with improving OI PCR could ignite bargain hunting early in the August series. Going ahead, a decisive move below 24500 would confirm a channel breakdown and heighten the risk of deeper declines. Until a clear reversal pattern emerges, market participants are advised to employ a long-short strategy while adhering to strict risk management practices.
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